Standard Oil Company; Trusts, Industrial -- United States
Six months after this decision the Pennsylvania and other Northern
roads made these words, "He must pay freight on the barrels," the
occasion of an increase of rates, which stopped the refineries of
the independents. They were carrying free the heavy tanks--"the
most undesirable business we do," in the language of their freight
agent. They had been carrying the barrels of the independents free
for twenty years. Now, continuing to carry the tank-cars free, they
levied a prohibitory transportation tax on the barrels. To cap it all,
they declared, in announcing the new rule, that it had been forced
upon them by the Interstate Commerce Commission. But the President
of the Pennsylvania Railroad is found admitting that it was the oil
combination that dictated the move--"the seaboard refiners insisted."
"Upon your decision" (in the Rice case) "being promulgated," he wrote
the Interstate Commerce Commission, "the seaboard refiners insisted
that we were bound to charge for packages," barrels, not tanks, "as
well as for the oil."[234]
The seaboard refiners were the members of the oil trust; the others
at the seaboard had been wiped out years before by the help of the
railroads. Though the Pennsylvania Railroad was not a party to the case
before the Commission, though it had not been called upon to change
its practice, which was what it ought to be, it did now change it from
right to wrong. The Commission had ordered that discrimination between
the barrel and the tank should cease. The Pennsylvania, which had not,
strange to say, been practising that forbidden kind of discrimination,
immediately resorted to it, and, stranger still, gave as its reason the
order of the Commission against it. It must have been a keen eye that
could find in a "qualified and incidental remark," as the Interstate
Commerce Commission styles it, in such a decision, a command to charge
for the weight of the barrels and increase freight rates; but such
an eye there was--an eye that will never sleep as long as Naboth's
vineyard belongs to Naboth.
All the trunk-line railroads to the East took part in the new
regulation--September 3, 1888--that freight must be paid thereafter
on the weight of the barrels as well as on the oil itself, and at the
same rate. This increased the cost of transportation to New York to
66 cents from 52 cents, and to other points proportionately. Freight
rates on the oil of "the seaboard refiners" who shipped in tanks were
left untouched. In the circulars announcing the change it was said to
be done "in accordance with the directions of the Interstate Commerce
Commission."[235] When the refiners whom this advance threatened
with ruin wrote to expostulate, they got the same reply from all the
railroad officials as from President Roberts of the Pennsylvania
Railroad: "The advance in rates ... has been forced upon us by the
Interstate Commerce Commission."[236]
Public-domain text, read in full here on John Shaqi.
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